These metro areas rate highest for ease of starting a business, government support of entrepreneurs, and more, according to a recent Thumbtack survey of more than 8,000 small businesses.
The capital of Texas ranks no. 1 for small business friendliness, according to Thumbtack's latest annual survey. Entrepreneurs say it's easy to start a business there, networking is top-notch, taxes are low, regulations are light, and hiring is a breeze.
But what really sets Austin apart is a culture that embraces new ideas -- its annual South by Southwest entrepreneurial festival is just one example. That culture goes out of its way to support new businesses.
Austin is the friendliest overall to small businesses, but Virginia Beach rates as the easiest place to start one.The huge inrush of federal dollars is a big reason. Virginia Beach is only a half-hour from the world's largest naval station in Norfolk. The community is a haven for veterans, including members of the famed SEAL Team 6.Virginia Beach's status as a vacation town helps too. When the government isn't spending, tourists are.
Like the other three Texas cities in this year's top 8, Houston offers entrepreneurs a business climate with light local regulations and licensing requirements.
But what they really appreciate about Houston is how affordable it is to get business space there. It's the U.S.'s fourth most populous city, but its real estate prices don't reflect that. Office space that goes for about $300 a square foot in Houston would cost more than twice as much in New York City.
That means business owners can operate bigger shops, and patrons have more money to spend. Marcus Davis started The Breakfast Klub, a breakfast-themed restaurant, in 2001 and notices the extra cash in his customers' wallets.
The Colorado Springs culture of rugged individualism helps it score well with business owners, who appreciate its easygoing zoning laws and light regulations.
They also value its highly skilled population: The city is full of recent graduates from the University of Colorado and Colorado College, as well as Air Force veterans from nearby bases.
"We've got a pretty talented workforce we can tap into," said Jon Duncan, CEO of Managed Business Solutions, a consulting and data center management firm.
In San Antonio, it's about the slower pace of life.Sure, the city offers low taxes and few regulations like other Texas metros in the top 8.But what makes this city truly attractive is its small-town feel. That's what convinced Chris Fogle to return to launch his cybersecurity consulting firm, Delta Risk."I wanted to come back here because I like the quality of life," Fogle said. "It's not a rat race."Lower living costs are another plus, said Mir Imran, who has launched five companies in the city since 2010.Imran said he can hire a software engineer for $60,000 a year in San Antonio, as opposed to $100,000 in San Jose. And because dollars stretch further, it's easier to convince job candidates to move there. Silicon Valley executives, for example, can trade a 2-bedroom condo that costs $1 million in California for a mansion, Imran said."The cost of building companies is much lower," he said.
Nashville is a cheap place to live, and taxes are low.
Even better, the cooperative atmosphere that fosters its formidable music scene also makes it a great place for entrepreneurs.
Songwriters here work together, and the business community takes the same approach, said Kate O'Neill, who traveled to Nashville as a musician in 2003. "There's a really connected, collaborative spirit I haven't seen elsewhere," said O'Neil, now CEO, a marketing analytics firm.
That sense of community also makes it easier for startups to strike deals with other business owners, said Brian Tolbert, who founded health-care advisory firm Bernard Health in 2009. Tolbert was pleased to find that local firms were so willing to take his cold calls.
"Because you have such a transient population, it's a very open community," he said. "They're much more open to taking meetings from strangers. I don't think we would be able to have that kind of success in other markets."
Dallas earns high marks from entrepreneurs for its low taxes and minimal government interference.
What's more, the Dallas metro area is huge, and it's only getting bigger. The Dallas-Fort Worth-Arlington Metroplex has 6.7 million people and is the fastest-growing region in the country.
As major companies move to town, smaller companies are able to grow by providing services to them.
When European furniture maker Timothy Oulton set up its first U.S. showroom there last year, it needed a company to produce promotional video. Dallas HD Films landed the gig and has since been hired again to produce video for its factories in China.
Hussain Manjee, the video company's CEO, said they would have been overlooked in a more established city like New York.
Entrepreneurs give Raleigh great ratings for its training and networking programs.The city's greatest asset is the talent it draws, business owners say. Smart workers move to the area from all over because of its quality of life and the so-called Research Triangle.Within the triangle -- formed by the cities of Raleigh, Durham and Chapel Hill -- are three major research universities. There's also the 7,000-acre Research Triangle Park, one of the nation's premier high-tech research and development centers."We have some of the most innovative and world-class colleges," said Jennifer Dunleavy, CEO of Accuro Group, a staffing agency. "That creates a market that thrives on education, innovation, and creativity."Dunleavy's firm has benefited greatly from the area's technological and bio-science research, which has drawn talent and prospective clients.
By CNN
